Earnings Report /

Ozon: 4Q21 financial update brought no surprises, 2022 GMV growth guidance reiterated

  • Ozon (OZON US: N/R) reported its preliminary unaudited 4Q21 IFRS results

  • 2022 guidance reiterated

  • USD750mn convertible bonds

Anna Kurbatova
Anna Kurbatova

Senior Analyst, TMT & Agro

Olesya Vorobyeva
Olesya Vorobyeva

Analyst, TMT, Agro and Retail

7 April 2022
Published byAlfa

Ozon (OZON US: N/R) reported its preliminary unaudited 4Q21 IFRS results. GMV (+133% y/y) and revenue (+75% y/y) growth expectedly decelerated from 3Q21. The EBITDA loss of 9% as a percentage of GMV improved compared to 3Q (excluding one-offs). 4Q21 OCF returned to a positive zone on the back of favorable seasonal dynamics in working capital. The company reiterated its 2022 GMV growth guidance of 80%+ y/y.

  • GMV (incl. services) surged 133% y/y in Q4 (“more than the 130% y/y” dynamic was indicated in February) to RUB177bn, supported by a successfully executed high-season “Mega Sales” campaign. Thus, with RUB448bn in 2021 GMV Ozon continued to secure its #2 place among Russian diversified e-commerce peers after Wildberries (RUB844bn 2021 GMV).

  • 4Q21 revenue was up 75.4% y/y to RUB66.3bn (a deceleration from 85% y/y growth in 3Q), driven by the 1P business performance, as well as strong growth in service revenue from marketplace commissions and advertising revenue. As a result, 2021 revenue grew 70.7% y/y to RUB178bn.

  • 4Q21 adj. EBITDA loss was RUB15.9bn compared to a RUB3.6bn loss in 4Q20 and RUB11.3bn loss in 3Q21. Adj. EBITDA as a percentage of GMV incl. services was negative 9% (vs. negative 4.7% in 4Q20 and negative 10.4% in Q3) indicating some q/q improvement in unit economics. As a result, the 2021 EBITDA loss amounted to RUB41.2bn, implying a negative 9.2% of GMV incl. services.

  • As stated earlier, 4Q21 OCF came positive at RUB15.2bn compared to RUB10.6bn in 4Q20 and a negative RUB9.1bn in 3Q21, on the back of favorable seasonal dynamics in working capital. On a full year basis, Ozon generated RUB13.6bn of outflow on OCF and RUB37.6bn on FCF.

  • Ozon spent RUB8.8bn in capex in 4Q21. Thus, total capex for 2021 amounted to RUB19.3bn (vs. RUB20-25bn capex planned for 2021).

2022 guidance reiterated. Interfax reported, citing Ozon’s press office, that the company reiterated its earlier 2022 guidance of 80%+ y/y growth in GMV incl. services.

USD750mn convertible bonds: Ozon is currently developing a proposal to the holders of bonds to address the delisting event and has engaged Alvarez & Marsal and Cleary Gottlieb Steen & Hamilton LLP as its financial and legal advisors, respectively.